Sweet and sour

2 December 2020 By Karen Kwok Follow @KarenKKwok

On the one hand, the U.S. market leader’s $27 bln pre-IPO valuation suggests Just Eat got a bargain buying Grubhub. On the other, cut-throat competition led by DoorDash has cost Grubhub market share and profit. The American home-delivery recipe isn’t yet long-term tasty.

This content is for Subscribers only

Context News

DoorDash on Nov. 30 said it planned to sell 33 million new shares at a price between $75 and $85 each in its initial public offering. At the top of the range, the company would be valued at $27 billion based on shares outstanding, excluding additional shares that would be issued if outstanding options and equity awards are taken into account.

Just Eat Takeaway.com agreed on June 10 to buy Grubhub in an all-stock transaction that valued the U.S. food-delivery company at $7.3 billion at the time.

Email a friend

Please complete the form below.

Required fields *